WorldCom's fraudulent scheme of capitalizing telephone line costs instead of expensing them was discovered by:
A)external auditors.
B)astute investors.
C)U.S.Securities and Exchange Commission.
D)internal auditors.

Question

Quizplus · Accepted Answer

WorldCom's fraudulent scheme was uncovered by its own internal audit department, led by Cynthia Cooper and her team. They discovered the improper accounting practices, including the capitalization of expenses that should have been expensed, which significantly inflated the company's assets.

WorldCom's Fraudulent Scheme of Capitalizing Telephone Line Costs Instead of Expensing